Phibro Animal Health Corporation · NASDAQ:PAHC
Phibro Animal Health — Q4 FY2019 Earnings Presentation
21 slides from Phibro Animal Health's earnings presentation, Aug 28, 2019
Slide 1: Phibro Animal Health Corporation Fourth Quarter – June 30, 2019
Phibro Animal Health Corporation Fourth Quarter – June 30, 2019 U.S. toll-free +1-877-853-5634 Webcast and Conference Call International toll +1-315-625-6893 August 28, 2019 Conference ID: 1266589
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements This communication contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical or current fact included in this report are forward-looking statements. Forward-looking statements d
Slide 3: GAAP and Non-GAAP Financial Information
GAAP and Non-GAAP Financial Information Reported results are presented in accordance with GAAP Adjusted results are GAAP results adjusted to exclude - Acquisition-related items, including intangible amortization, cost of goods sold, accrued compensation costs, transaction costs and accrued interest
Slide 4: Opening Remarks and Financial Review
Opening Remarks and Financial Review Jack Bendheim Chairman, President, Chief Executive Officer Richard Johnson Chief Financial Officer 4 August 28, 2019 Webcast and Conference Call
Slide 5: Highlights
Highlights Q4 – June 2019 Net sales decrease due to volume decline in For the three months ended Change Animal Health and lower selling prices and 2019 2018 June 30 product mix in Mineral Nutrition, partially offset (in millions, except per share amounts and percentages) by growth in Performance Pro
Slide 6: Selected Line Items
Selected Line Items Q4 – June 2019 For the three months ended June 30 2019 2018 Change (in millions, except per share amounts and percentages) Adjusted gross profit Net sales $ 203.9 $ 211.8 $ (7.9) (4)% Adjusted gross profit 66.6 68.9 (2.2) (3)% - Animal Health volume declines in MFAs and other Adj
Slide 7: Animal Health
Animal Health Q4 – June 2019 MFAs and other - Lower demand in China due to ASF - Continued volume growth in Latin America and other Asia Animal Health Pacific countries For the three months ended Nutritional specialties 2019 2018 Change June 30 - Volume growth in international dairy (in millions, ex
Slide 8: Other Segments
Other Segments Q4 – June 2019 For the three months ended 2019 2018 Change June 30 (in millions, except percentages) Mineral Nutrition Mineral Nutrition - Sales decrease due to product mix and Net sales $ 56.0 $ 60.3 $ (4.3) (7)% lower average selling prices; volumes increased Adjusted EBITDA $ 3.8 $
Slide 9: Selected Line Items
Selected Line Items Year – June 2019 Net sales For the year ended June 30 2019 2018 Change - Animal Health sales comparable to the prior (in millions, except per share amounts and percentages) year Net sales $ 828.0 $ 820.0 $ 8.0 1% - Performance Products growth Adjusted gross profit 269.9 273.7 (3.
Slide 10: Capitalization
Capitalization June 30, 2019 2.8x leverage ratio at June 30, 2019 - $327 million total debt - $118 million Adjusted EBITDA $82 million cash and short-term investments on hand at June 30, 2019 $7 million source of cash for the year, before change in short-term investments and financing activities 10
Slide 11: Guidance
Guidance Year – June 2020 FY2020 FY2019 Change low high low high (in millions, except per share amounts and percentages) Net sales - Animal Health segment $ 537 - $ 557 $ 532 1% - 5% Net sales 833 - 863 828 1% - 4% Adjusted EBITDA $ 103 - $ 107 $ 118 (13)% - (9)% Adjusted diluted EPS $ 1.08 - $ 1.15
Slide 12: Guidance
Guidance Year – June 2020 Animal Health sales - Current and new products growth - Osprey Biotechnics business - Significant sales decline in China due to African Swine Fever Increased operating expenses - Strategic growth initiatives - Reset of variable compensation to typical levels 12 August 28, 2
Slide 13: Guidance
Guidance Year – June 2020 We expect Animal Health sales growth $ millions Growth Growth Current and new products $25 - $43 5% - 8% Acquisition and related $20 - $22 4% China MFAs $(40) (7)% Total $5 - $25 1% - 5% 13 August 28, 2019 Webcast and Conference Call
Slide 14: Guidance
Guidance Year – June 2020 Animal Health sales growth Nutritional specialties – dairy - Refocus of the sales force - Repositioning of key products planned for mid-year - Accelerated international growth Nutritional specialties - poultry - Current products - Recent launch of Provia PrimeTM The acquisi
Slide 15: Guidance
Guidance Year – June 2020 Animal Health sales growth (continued) Vaccine products for poultry and swine - Recent launch of MB-1TM, a poultry vaccine adapted for use in the hatchery - Overlap negative comparisons on the loss of a distribution arrangement in October 2018 - Overlap turbulent economic c
Slide 16: Guidance
Guidance Year – June 2020 Adjusted SG&A expenses expected to increase by $28 - $33 million, or 16% - 19%, to invest in major strategic initiatives to support future growth Ongoing development of the vaccine production facility in Ireland, with first sales from the facility expected around July 2021
Slide 17: Guidance
Guidance Year – June 2020 Adjusted SG&A expenses (continued) Developing additional data to support the introduction and penetration of current and newly launched nutritional specialty products Ongoing product development and market investigation for companion animal products, including our RejensaTM
Slide 18: Guidance
Guidance Year – June 2020 Adjusted EBITDA expected of $103 - $107 million Adjusted net income expected of $44 - $46 million - Decline in adjusted EBITDA - Increased depreciation expense - Increased interest expense Net interest expense expected to increase due to higher borrowing levels - $55 millio
Slide 19: Guidance
Guidance Year – June 2020 We expect the adjusted effective income tax rate to be similar to the prior year Adjusted diluted earnings per share expected of $1.08 - $1.14 per share - Diluted shares outstanding are expected to be approximately unchanged Quarterly trends - Full-year decline in adjusted
Slide 20: Q&A Session
Q&A Session 20 August 28, 2019 Webcast and Conference Call
Slide 21: © 2019 Phibro Animal Health Corporation, Teaneck, NJ 07666 Phibro; Phibro logo design; Healthy
© 2019 Phibro Animal Health Corporation, Teaneck, NJ 07666 Phibro; Phibro logo design; Healthy Animals. Healthy Food. Healthy World.; and any other Phibro brand or brands shown herein are trademarks owned by or licensed to Phibro Animal Health Corporation or its affiliates. Any other trademark that
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